Operations Management Assignment: Business Case Analysis Of Amazon Inc.
Question
Task:
Operations Management Assignment Instructions:
Read the following Scenario and prepare a report with the guidelines provided. Scenario: The learner is acting as an internal Operations Management expert for a chosen organization (ideally a fortune 500 organisation delivering products or services). Learner is required to look at existing operations management & quality management processes, procedures & systems within the organization, &, evaluate competitiveness of the organization in achieving key strategic objectives both in the domestic and global contexts. Where required, compare with other best-in-class organizations to further support your responses to the different parts of the report.
Report should include the following:
1. Executive Summary
2. Introduction of Chosen Organization briefly stating the organizational objectives that can be linked to Operations and Quality processes.
3. Evaluate success of existing operations management processes & quality management processes in achieving chosen organization’s strategic management objectives. You must do this by conducting a review of operations strategy of your organization, exploring both the current & long-term solutions to address the challenges your firm is experiencing.
4. Evaluate how each of the following tools and techniques specifically contribute to achieving organizational objectives and competitiveness of your Chosen company in different alternative scenarios of Operations Management, in the domestic and global context:
- Any 2 tools of Operations Management
- Any 2 of the following: FMEA, Benchmarking, Lean manufacturing, 6 Sigma, JIT.
5. Discuss how information management system enhances overall business operations of your Chosen organization and analyse the role of ICT applications in Operations optimization in your chosen organisation. Evaluate how operational strategies involving the use of ICT applications help gain a competitive advantage in your chosen organisation?
6. Discuss how AI can enhance overall business operations of organization in both the domestic and global contexts, while highlighting challenges organization may probably face if implemented.
7. Conclusion & Recommendations
8. References (Adhering to Harvard Referencing Format)
Answer
Task 1:
Executive summary
The present operations management assignmentis based on the operation management of AMAZON inc which is referred to as one of the biggest e-commerce retail companies. In addition, this assignment might provide a clear and critical overview of operation management tools, systems, processes, and quality management processes. Amazon is denoted as the first company, which enables innovation, AI and machine learning in its internal services such as operations, production and supply chain logistics. This assignment has focused on its existing AI and IoT services for fulfilling customer satisfaction along with highlighting key consequences differing from its overall services. Therefore, a brief recommendation has been constructed in this report that can provide critical knowledge regarding research and development factors in the context of global and local business.
Introduction of the chosen company
Quality management refers to the premium quality of the products and services offered to the customers by the producer or retailer. In addition, the quality of goods or services refers to the company's performance, durability and trust ability. Quality is a key driver of operation management that differs the company products and services from rival companies in a competitive market scenario. In addition, the present assignment is based on a critical report overview of Amazon operation management along with its operating tools, IoT, AI and quality process analysis for evaluating its future growth and success criteria. Quality management tools refer to exclusive changes and transformations in the existing operation services that result in the premium quality of operation management along with product services. One of the significant and essential components of operation management is quality checking which creates a superior standard for the company along with-it enhancing brand existence also. Amazon is one of the biggest brands that are famous for its products, services and operations. In addition, the main objective of Amazon is to focus on customer satisfaction and trust abilitywhich help the brand to become the world's most appreciated retail and E-commerce brand (Amazon.com, 2022).
Amazon is an online platform-based e-commerce retail company with impressive innovation and a creative business structure that ensures its global accessibility in different new market dimensions. The company’s fundamental operation management is divided into three major sections that include, marketplace, fulfilled by Amazon and retail. Amazon inc allows third-party retailers to sell their products through the platform of Amazon and that is denoted as the marketplace operation. On the other hand, Amazon sells products through its inventory and fulfilled by Amazon refers to the company’s retail operation where Amazon directly sells its own products through e-commerce services. Lastly, the Amazon fulfil operation includes third party products, but Amazon processes its quality check afterwards to sell it through the websites and applications, this operation ensures product quality and provides superior quality goods and services to the customers. Amazon is the smartest and most innovative business entity globally with its cost-effective services, AI-controlled warehouse management, inventory and high-thinking store facility to the customers that ensure customer trust in the brand (Aboutamazon.co.uk, 2022). Due to the high usage of e-commerce technology and innovation in operation management companies face mixed corporate outcomes that make the way for business growth in the near future along with providing competitive advantages. Amazon maintains a reduced inventory operation concept which makes its inventory and warehouse management easy and quick. In addition, reduced inventory concepts ensure lower production costing, instead of having a high range of inventory; this assists the company to enhance its customer base (Fortune.com, 2021). With advanced supply chain management and delivery logistics operations Amazon centralised its inventory in one strategic location which helped the company to increase it's through reducing its service costs.
Evaluation of existing operation management process and quality management process of the chosen company
The achievement of Amazon.inc in e-commerce is based on the amazing accuracy obtained through their process of operations management (OM) strategy, which directly affects their productivity. This company implements ten operational management strategies in their business to enhance their productivity in the global marketplace. As Amazon is the global superpower in the e-commerce market, this organisation wants to illustrate the need for productivity by the digital platform for the excellent quality of service (Delfanti and Frey, 2021, p.657). So, Amazon follows a few operation management strategies to enhance their business and expand their business in a global marketplace.
Design of their products and services is one of the most important procedures for operation management in current business strategy. This strategic decision chapter of operations management discusses the design of organisational productivity (Verbitskiet al., 2018, p.789). To use this strategy, Amazon designs a good quality of products for their customers and enhances their productivity by satisfying their customers. Amazon mainly attempts to solve their problems using advanced technology in their business. For example, it can be stated that this organisation has implemented innovative communication and information technology and it helps the organisation to make it more convenient and efficient for attracting their target customers.
These technologies also help the organisation to implement Amazon's e-commerce operations and aid to conduct their business efficiently and effectively in the global market.
Quality management strategy is another crucial operation management process of Amazon that helps the business firm to develop and expand their business in the global market (Dias Galuchi, et al., 2019, p.157). The primary goal of the decision area of operations management for this large enterprise is to achieve the highest standards of operational performance to satisfy their consumer demands. Operations management approach of Amazon.Inc includes actions to promote the e-commerce company regularly. The organisational culture of this firm also encourages its workers to generate ideas. But their operation management system completely depends upon three fundamental chapters including the marketplace that is fulfilled by Amazon as well as retail and Amazon also allows third-party sellers to sell their products through the platform of Amazon. For example, it can be stated that this large business organisation motivates their staff to be more creative and innovative for generating new ideas to handle issues. This quality operational management strategy boosts the company to develop its performance in the global market.
Capacity and Process management is another important operational management objective that Amazon follows to develop their business. The management of production methods and capacity is one of the major aims of Amazon’s operations management procedure. Amazon is using substantial automation and innovative strategy to enhance their business operations in this strategic decision area (Delfanti, 2021, p.40). As an example, the business firm optimises the ordering processes to accommodate as many continuous orders as necessary. This strategy of operations management emphasises the significance of automation and accompanying technology for boosting procedures and capacities of Amazon's e-commerce.
The supply chain management system is one of the most important operation management objectives of Amazon. The objective of this operation management strategy is to optimise the supply chain for achieving the organisational goals of Amazon (Cecagno, 2019, p.408). Amazon accomplishes this strategy through automation technology and this organisation is allowing their suppliers and buyers to access certain information about the IT infrastructure of Amazon.
Sellers modify their supply levels depending on data from the online retail website of the organisation. Buyers can easily track their orders and then they can connect with their suppliers for utilising data from the website of Amazon.
Inventory management is another operational management strategy that Amazon has followed to enhance their operational performance and productivity in the global marketplace. The aim of the operations management for inventory management is to ensure acceptable inventory ordering and storage (Baboolal-Frank, 2021, p.2). Amazon manages this strategic decision area with their manufactured products and supplies and Just-in-time inventory management in only certain places. Some products that arrive at the distribution centre of the organisation are immediately dispatched to meet customer demand' orders under just-in-time inventory management. Amazon maintains other products as part of this Amazon has produced commodities inventory. Furthermore, warehouse workers of Amazon are instructed to boost the efficiency for delivering orders through mobile and computers that are linked to a central server and database for maintaining effective inventory holding and ordering. This operations management of Amazon.com Inc. maintains their online retail inventory quantity in this approach and this inventory management strategy also helps to reduce costs while meeting with the market opportunity.
Industrial organisations must continuously concentrate on their quality to protect brand recognition, increase customer satisfaction, and minimise costs (Lukiyanchuket al., 2020, p.408) .AWS and their extensive partner network may assist this organisation in designing and automating quality control with rapid fully scalable machine learning solutions to enhance efficiency, reduce expenses, and maintain the standard of quality as per the customers demand.
Amazon has followed three significant-quality management procedures to assess, evaluate, and increase the actual quality of the deliverables. "Quality Assurance Process", "Quality Control Process,"and “Continuous Improvement Process." these three operations, which are major elements of the Quality Management that the organization has implemented to develop the quality management system.
Quality assurance (QA) is a method of avoiding mistakes and faults in manufactured goods and preventing problems when going to deliver products and services to clients and is defined by ISO 9000 as an aspect of quality management which is mainly focused on delivering confidence that quality specifications can be encountered (Wagner et al.,2020, p.257). To follow this quality management procedure Amazon has enhanced their customer satisfaction increased efficiency and reduced wastages. Amazon has also applied the techniques of AWS data analysis to determine the quality of their deliverable products and how rapidly conversion lines can run to reduce ripping. Amazon has boosted their earnings for the process of one production by huge amounts of money by minimizing paper rips (Aws.amazon.com, 2022).
Quality control (QC) is the mechanism by which organisations enhance the performance of all components that are involved in the process of manufacturing products. Quality management is also defined by ISO 9000 as the component of quality management and the primary goal of the process of quality management is to satisfy quality standards. Amazon has also implemented this quality management process that helps the organization to develop their customer satisfaction by providing quality goods and services. The main goal of Amazon is to attract their customers and also want to increase their adaptability at a greater position of consistency in the global marketplace.
The continuous improvement process (abbreviated CIP or CI) is the continuous attempt to optimize goods, operations, or processes. The final process of quality management that Amazon has followed to expand and develop their business and serve quality products to their customers in the global market (Wells et al., 2018, p. 717). The process of continuous improvement helps the organization to enhance their customer satisfaction, to resolve their legal problems like as EU MDR and helps to increase the constancy of processes and projects which engage with the production process. The process of continuous improvement also helps Amazon to increase their operational efficiencies, avoiding waste and improving the usage of resources such as time.
Current and long-term solutions to address the challenges Amazon currently facing
Amazon has had enormous growth over the years, much of it has been generated by their core ecommerce industry. They have contributed to approximately 44 per cent of leading e-commerce sales in 2017 and around 4 per cent of the overall retail market in the United States.
While this expansion creates wonderful opportunities for those in the e-commerce industry, it also raises issues for Amazon retailers. This organization has become Amazon's first agency of authority, which has been commencing from the year of 2001, and are well enough in the complexities of the global marketplace and mainly focused on serving the customer to grow their business on the Amazon.
Amazon is a very complex platform for sellers. Sellers need to understand in detail about shipping possibilities, re-negotiating prices, FBA operations, duplicate items, MAP challenges, tax set up, buying box competitions, review management, and many other topics. So If sellers want to ensure a healthy and successful campaign on Amazon, those sellers must keep up with the ever-changing marketplace and also try to utilize specialists, whether in-house or via an agency like Adlucent. This is the current biggest challenge of Amazon that sellers are facing to grow their business in the Amazon.
To solve this problem seller may begin by analyzing current Amazon quality performance from their other channels and redeploying their money wisely. Sellers can utilize Amazon's facilities, such as their Booster with FBA program and their Seller Learning channel on YouTube. Amazon can simplify their procedure by which sellers of Amazon can easily implement this.
Profitability is not guaranteed; this is one of the other biggest issues of Amazon. In the current Scenario, Amazon has been also dealing with many legal problems, a media assault in some regions of the world, competition lawsuits, and immigration issues. That needs precise handling and thoughtful consideration. This has been a problem for numerous large organizations, many of which are well-known in the eye of the public. Worker protection and happiness is a major concern for Amazon, even if it hasn't been highlighted significantly in the ESG rankings. It has higher turnover at a time when it has been employed at incredible speeds. Amazon employs approximately 1.3 million workers globally and plans to produce 500,000 more in 2020(Indusedu.org. 2022). Evaluate operation management tools of the chosen company for achieving organisational objectives and competitiveness Tools for operations management are very important to enhance better organizational performance as the operations manager for any organisation. Every enterprise has various requirements, and every issue is different from the others, thus a multitude of different tools are essential to operate business operations management as efficiently and effectively.
Six Sigma is a very well-known operation management tool in the manufacturing industry nowadays (Verma et al., 2021, p. 8106). This approach assists the firm in a number of ways, including total quality management dedication, the concept of organizational performance, customer satisfaction, process optimization, and the concept of measurement rather than guesswork. It is helping every impact of the organization to better understand the changing preferences of customers, markets, and as well as the innovation strategy with benefits for the employees, users, and stockholders. Six Sigma has many flaws, including this approach is very time consuming, requiring expert workers, and some opponents claim there is nothing new in Six Sigma (Qin and Liu, 2022, p.714). However, the benefits of Six Sigma also help to overcome any issues of this approach and make it an effective approach for quality management. Amazon.com has adopted this approach for enhancing their operation management and this approach is very effective for this large business enterprise.
Amazon.com has significantly grown their product offerings from their modest origins as the online book store. They have also incorporated innovative approaches including same-day dispatch, which is ready to attain new efficiency heights with autonomous drone technology. Amazon has followed Six Sigma as the operation management tools there and this tool of operation management helps the organization to be successful in the global market. Six sigma strategy is integrated in the organization's growth.Six sigma is the key element of Amazon's quality management strategy, which has been originating since 1999 when Jeff Wilke has joined the Amazon team as VP of operations. He moved from Allied Communication, and his expertise in six sigma has considered him the perfect candidate to drive operating effectiveness (Sousa et al.,2021, p.814). According to the annual report of 1999 of Amazon.com, Two things are required by quality management of Amazon that are constant enhancement in customer satisfaction and improving performance, profitability, productivity, and asset velocity across all companies.
Six Sigma has been created as a method to reduce costs in industry for manufacturing operations. However, the use of it is not confined to the manufacturing of products; As Amazon.com is one of the world's biggest online retailers, and this organization has also implemented the approach of six sigma in their business into their operation management strategy.
Figure 1: SIX sigma strategy in amazon
(Source : Amazon.com, 2022)
Operational excellence
Six Sgma has always been deeply embedded in Amazon's organizational culture.
Amazon simply cannot afford to let standards fall with only about 2000 goods that are requested every sixty seconds. In principles of Six sigma as early as 1999, the corporation has implemented a programme regarding Strategic Management that is aimed primarily for increasing the performance of a company.
Amazon emphasizes operational excellence in two different ways. The first is to create continuous improvements for customers. And the second is to enhance customer satisfaction And also help to boost efficiency, profitability, efficiency, and asset velocity within the company.
Recruiting the 'BEST & BRIGHTEST'
Amazon has started to pursue their goals by recruiting the freshest and brightest candidates. This is a very common tactic for the Six Sigma approach. They take this step further through educating their workers for being Six Sigma Black Belts.
Six Sigma approaches
Amazon has been able to mitigate variation by actively looking it out by applying DMAIC, Analysis of Root Cause and similar operational management tools while Amazon is applying the methods of six sigma (West, 2019, p.28). This organization has eliminated wastage by reducing costs to implement this six-sigma strategy. Amazon is also reducing the stages of the non-value-added procedures, and this strategy also helps for developing the Kaizen-based organisational structure.
Outcome
SixSigma has produced Amazon in a completely different organization with a stronger management strategy of inventory. This has also helped the organization to enhance their productivity and helped to improve value stream management.
Amazon is determined to provide outstanding customer service and an exciting shopping experience. They have appeared indistinguishable from any other online bookstores before they have changed their business operations strategy around the beginning of the century.
Amazon has made huge progress toward becoming a global internet store by implementing the Six Sigma approach in their business. Amazon has taken over the world with an organizational culture that has mainly centred on continuous progress and maximum efficiency in the global market. As a result, they have grown as a technology powerhouse on the level of Microsoft and Apple. The statistical illustration highlights the impact of Six Sigma on Amazon.com.Revenues at Amazon from 2007 to 2021, Revenues of Amazon.com have dramatically improved after applying the six-sigma approach in the year 1999, as seen by statistics that have been provided below.
Figure 2: The current revenue of Amazon.com after implementation of the Six Sigma approach
(Source:Indusedu.org. 2022)
Amazon implements Lean Six Sigma to enhance customer satisfaction. Amazon's success has been established by constantly keeping the customers in mind. This approach has aided Amazon's progress from 600 employees in 1997 to over 1.3 million now. In 2020, the sales of this company totalled $386 billion, and a 37% gain over 2019(Statista. 2022).
JIT Tool
Just-in-time is a type of management philosophy that provisions to the requirements of global merchandising. JIT inventory management strategy along with significant objectives of reduced process inventory and eliminating waste. In addition, JIT is associated with inventory costing through different managing capabilities. Therefore, JIT in amazon implemented product and inventory management that helps to deliver products on time with high productivity rates. However, implementation of JIT includes numerous issues such as leaving suppliers and customers downstream. In addition, JIT consists of supply shocks, loopholes in a flexible production system and a sustainable workplace which helps the company to increase supplier costing (Lim and Debray, 2021, p. 154). Amazon understands the core interests and desires of customers, as the customers desire to have fast delivery along with accurate products. The company enables a JIT inventory management strategy that helps to assist in investing in delivering premium services along with high-quality services to the customers for high customer satisfaction. Amazon enables quick delivery along with a high inventory strategy which helps the customers to choose from huge inventory and warehouse services. Nowadays, the company enables JIT strategy for their grocery supply in pandemic situations for quick and responsible delicacy (Mukwakunguet al.,2019, p. 2172). In pandemic conditions, groceries have become the most essential commodities that are required to be delivered in just-in-time, these needs to enable JIT strategy within amazon inventory management for reducing delivery fails.
Evaluation of information management system application in operation optimisation of the chosen company
Information systems is a non-segregated set of different elements for accumulating, restoring and processing information and data for analysing knowledge and digital products information. Organisations use information systems to operate and manage their internal and external operations, link with customers, understand their interests and interact with the suppliers. This system is used to exchange information and knowledge regarding operations, management to run sustainable and organise inter-organizational supply chain management and competitive electronic market. Amazon is one of the e-commerce leaders with a vast consumer base along with a high range of clients.
Figure 3: Information system process of Amazon
(amazon.com. 2022)
Amazon utilised significant and exclusive information systems in its operation and business process to maintain competitive advantages through its highly constructed AI and IoT efficiency in collection, restoring and analysing its trustful customer's interests. Amazon’s web services are the most adoptable and used cloud platform by the customers which offers almost 200 different featured services from other data centres globally. Amazon refers to a two-section information system software that operates simple storage services. This is interconnected with the Amazon web services and cloud computing of Amazon that provides the customer's access to the e-commerce systems. The web services of Amazon enable its customer activity to the creation of their accounts and use the cloud as personalised profiles. This captivity enables improved efficiency in transactions, operations and quality management. Amazon web services are constructed with various systems with different capabilities to promote efficiency in its information management and supply chain logistics (Polacco, and Backes, 2018, p. 80).
Amazon utilised cloud computing in its entire operations along with its supply chain management that enables it to track the inventory, materials, products and services to get on-time updates. Supply chain management uses a cloud computing process to inform their customers regarding their order status along with allowing them to track the shipment updates. Cloud-based information systems of amazon enable solutions for huge data storage, integration of the processed data, data protection and knowledge sharing through its departments. Cloud computing allows the company for capability and processes for streamlined connection between different devices and expertise software uses. In the case of supply chain management Amazon uses its customised information system named PaaS that ensure quality, packaging, modify order status, provide customers information regarding delivery along with reduced manual mistakes. These information systems help the company to enable automated shipping and interact with the marketing and media channels regarding offers.
Amazon used an enterprise resource management system and oracle databases management system for collecting information through its web services. The information systems automate the customer ordering process along with high precision in ordering listing and shipment tracking (Sivieroet al., 2020, p. 373). Customer information management system is a critical key driver of amazon information systems that specifically denotes company growth and success over years. Amazon’s customer relationship management system helps to collect different consumers’ data, information such as their credit information, transactions, product interests and previous order records using significant algorithms for product sorting along with restoring information in the customer database. Amazon utilises a transaction processing system for processing transactions of customers to calculate the overall amount of money after picking interested products or items. Amazon serves invoices to their customers as the most acceptable information system trends used by different cloud-based e-commerce companies. Therefore, Amazon customises its web services that use Linux. Amazon Linux is the operating system that became famous and a choice for customers who typically used EC2 services (Lopatovskaet al., 2019, p.290).
Figure 4: Amazon cloud computing
(Source: Aws.amazon.com. 2022)
Nowadays, human life is controlled by different computing parameters that enable technology advancement induced lifestyle. There are very few companies that do not adopt these advantages and do not depend on their systems. Therefore, some certain companies such as amazon depend to a large extent on MIS which is used for managing information. It is considered as one of the important resources for effective supply chain management of a variety of operations at different departments that are facilitated by the ICT applications. Information system within Amazon includes controlling, planning and decision making along with managing risks (Cook, 2018, p. 40). Amazon is on the way to becoming the biggest retail company in the USA and it is estimated that this company will overtake Walmart in 2022 with its innovative and specific ICT services in supply chain management along with significant information systems used by different departments. Amazon is an e-commerce company and its gross product sales contributed to the US e-commerce sector by almost 43% in 2019, which denotes that the company understands customers’ needs which differs its merchandise sales from others. Amazon information system’s efficiency is referred to by its high-efficient delivery process which is denoted as the key operator in the business process such as ordering, transactions and other activities (Türegün, 2019, p. 91). Customer relation management is a part of Amazon’s information management which assists the company to understand the customer's needs, requirements, desired offers and products portfolio which helps to reconstruct its web services along with its ICT application framework. Effective information management helps the company to boost up possibilities and opportunities to use different business intelligence analytics and improve market context. In addition, developing an effective information system helps the company to boost up its customer relation, reconstructing its own cloud-based system along with developing new market strategies for enabling competitive advantages. Amazon introduces AI, information technology, IoT, cloud computing, operating systems, robotics in business operations which provide the company with high-level competitive advantages that enables its future growth.
Evaluation of AI in business operations in a domestic and global business context
Artificial intelligence is the new business pathway for success and development in future domestic and global business contexts. Amazon is denoted as one of the most innovative and technologically advanced retail companies worldwide. Amazon promotes e-commerce business and flourished it through continuous changes in its inventory, operation and quality management. Technology is the key operator of Amazon's business context from a domestic and global business perspective. As a first adopter of AI and technological advancement in business operations amazon always finds competitive advantages that help it to grow quicker than its near competitors. Amazon is a firm that enables its reconstruction and reorganisation to hold artificial intelligence in each part, operation and component of the organisation. Amazon’s artificial engines operate almost 35% of its overall sales, which is a huge amount in contrast to other businesses (Forbes.com, 2022). The recommendations and operating engines continuously apply artificial intelligence to understand and recommend in the context of customer queries, searches, information and interests’ analysis. This service allows the company to understand which specific product is searched by the customers and thus the AI recommends the product. Alexa is one of the best creations of the artificial intelligence advancement of Amazon which is a smart AI speaker that runs on a colloquial AI system. Not only in operations or website management Amazon enables AI engines, machines and fully automated robots in their warehouse and inventory management which is apparently an innovative business structure. In addition, the company enables drone-based supply services that are innovative and creative ways of delivering products at customers' doorsteps.
Figure 5: Alexa fund accelerator
(Source: Amazon.com. 2022)
Amazon uses drone delivery services and very soon it enables a fleet of automated vehicles that is denoted as one the most innovative operation steps globally. These technologies can assist the company by lowering delivery costing. As a consequence, these services decrease human interaction and engagement along with developing technical disturbance in future. In the case of drones and other technology advanced delivery services amazon can get access to rural and remote locations and increase their customer base quickly in a cost-effective way. Amazon sets a variety of aspects of consumer experience and satisfaction that disables its internal and external barriers through representing premium quality services to its competitors. Amazon is a leader in AI-based business structure along with customer satisfaction innovation which takes things to the next level of creativity by reconstructing the company’s internal operation through AI and machine learning efforts (West, 2019, p. 30).
Amazon’s adopted and approached AI is denoted as Flywheel, thus this technology assists in the business operations of the company. In terms of engineering, a flywheel is an easy technology tool structured to efficiently restore reserve energy. This works with its stored energy sources while the system is not performing continuously. Thus, instead of using high energy turning on and off processes, flywheels provide constant energy flow by saving energy and spreading it all over the system. This is a sustainable and energy protector AI tool that is not only used in inventory or warehouses of Amazon it is enabled in each amazon office and store. At Amazon, the Flywheel AI approach maintains AI innovation susurrate and enables energy and information flow through the other areas and operations of the company. This AI approach enables innovation and creativity in machine learning in one section where companies provide the efforts of the other teams (Dash et al., 2019, p. 45). These technical terms are used to drive the operation services and quality management of Amazon to ensure trust and quality products serve the customers. In addition, it can be evaluated that the development section of Amazon performs as a catalyst for its AI systems and machine learning success in other sections of the company such as its human resource, recruitment process, production, inventory and others. Amazon is denoted as one of the biggest adopters of artificial intelligence, machine learning and big data analytics which provide reconstructive and rearranging business structure to perform better in this new normal situation along with a highly competitive business market. As a consequence, Amazon’s highly innovative nature disrupts its human interaction and increases employee turnover rate highly which denotes future issues. In addition, more depended on AI decreasing its credibility disturbing maintaining its human-based services and increasing internal disturbances.
Conclusions and recommendations
Conclusion: According to the overall discussion it can be concluded that operation management of amazon consists of different components such as supply chain, customer satisfaction, consumer experience and others. These components differ its operation management from the other rival companies along with providing impressive growth and development criteria to the company. Therefore, it can be critically evaluated that amazon is an artificially advanced business entity that enables different technological approaches through its internal operation management. Amazon can be acknowledged by its advanced services and contribution to the e-commerce sector along with highly advanced technology used in quality and operation management. As per the discussion of the operation management of amazon it can be summarised that amazon uses specific operation management tools for performing sustainable and technological advanced operations within a competitive business market. Amazon’s existing business model is based on customer needs and provides their desires as quickly as possible to the customer’s doorstep. From years of reciprocity, Amazon has developed an efficient system that includes human interaction as well as AI induced services for delivering products to the customers with accurate products. The continuous use of automation in operations, quality checking, scanning, supply logistics, computing algorithms, conveyor services and inventory helps Amazon to finish the task quickly and reduce the time for the packaging process. The company also enables human elements and human interactions in its overall operations for keeping conventional business culture along with sustaining innovation operations that can become significant in business operations history.
Recommendation: According to the overall discussion it can be analysed that Amazon’s operation management is expanding in a constant process based on its high market opportunities in a competitive business environment. In addition, the company holds significant strength factors that include high customer retention, customer satisfaction and trustability. The company refers to these strengths as its key objectives for fulfilling its business goals in a local and global business context. As per the discussion, it can be recommended that the business entity can grow through its global expansion in offline mode as well along with new e-commerce markets. Amazon is an e-commerce company that fundamentally operates its business through online platforms such as its websites and applications. However, the corporation can implement different business strategies and reconstruct its business structure to enable offline business. Amazon already entered in maximum highly growing economies such as India, China and Australia, but as per its global threats the company needs to revise and reorganise its global business strategies. Amazon allows third parties to sell their product directly through its websites and is not involved in its quality checking that delivers to the customers (Kumar and Trakru, 2020. p. 571). Sometimes the products delivered damaged increases dissatisfaction factors among customers, companies need to use different and revised quality checking management to fulfil customer interests. Instead of global and internal threats, the company becomes the world’s largest e-commerce company with highly advanced AI and machine learning approaches that enhance its overall operations. In addition, it can be recommended that Amazon needs advanced employees to control its AI management and ensure quick and best quality services that can increase and retain customer satisfaction.
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